Swiss Financial Market Supervisory Authority Approves First Bitcoin ETF for Individual Investors

On October 20 that the Swiss Financial Market Supervisory Authority (FINMA) has approved, for the first time, an exchange-traded fund (ETF) targeted at individual investors that enables direct investment in Bitcoin. Under Swiss law, the product is classified as an “other alternative investment fund” with specific risks, while other asset managers have already submitted applications or announced plans to apply for Bitcoin ETFs.

FINMA noted that given Bitcoin's established trading history and high trading volume, this approval exempts the fund from certain risk diversification requirements. However, regulated entities must still implement measures according to relevant guidelines to reduce operational and custodial risks, and adhere to FinSA regulations throughout the sales process, which includes clearly disclosing Bitcoin’s price volatility and the risk of capital loss.

FINMA also warned that the market risk of Bitcoin remains high even when invested through an approved ETF, and investors may still suffer substantial losses due to the high volatility of crypto assets.